Schwartz first policy offering: Shale gas tax plan

How can you quickly come up with lots of new revenue for a cash-strapped state like Pennsylvania, without hitting most taxpayers in the wallet?

Allyson Schwartz, a leading democratic candidate for governor in 2014, offered up a plan Wednesday that would slap a 5 percent tax on the natural gas being extracted by energy companies from deeply-buried shale formations in the state. Gov. Tom Corbett has adamantly opposed such a fee.

The tax, on production, would go on top of the current impact fee, which is assessed by well. It was the Schwartz campaign's first policy roll-out.

The plan would raise $612 million if implemented in 2014, according to the Schwartz campaign. By 2022, proceeds would top $2 billion. That's a total of more than $16 billion in ten years.

"All Pennsylvanians deserve to share in the shale wealth and we can and
we should,” Schwartz said.

Besides Corbett, some Republican lawmakers have been resistant to slapping a tax on production, saying it will scare energy companies away and slow the economic growth the industry generates.

Schwartz admitted she might have some convincing to do. But she said lawmakers have also heard from constituents upset about underfunded schools and crumbling highways and bridges.

And that's exactly where she would direct the proceeds.

“There are real resources, both resources in natural gas and
in asking the energy companies, requiring the energy companies to pay a very
modest, moderate tax similar to what they pay in every state where they are
doing drilling," Schwartz said.

The Corbett campaign said the plan would scare away drillers, and cost jobs.

“If
this is a preview of Allyson Schwartz’s tax and spend agenda, Pennsylvanians
better hide their wallets,” said campaign manager Mike Barley in a statement. “Congresswoman Allyson Schwartz’s proposal to
drastically increase taxes on the shale gas industry will cost Pennsylvanians
good-paying, middle-class jobs by forcing the industry to relocate to more
business and energy friendly states."

Through a spokesman, Republican Senate President Pro Tempore Joe Scarnati said the current shale gas impact fee, which he championed, has raised $400 million for worthwhile projects.

"Senator Scarnati does not have interest on commenting regarding
the specifics of every Democrat candidate's so-called plans," said chief of staff Drew Crompton. "The sixteen billion
estimate, however, seems absurdly exaggerated."